If a person does not work in the financial industry, it can sometimes be very difficult for them to plan ahead. This is the reason why tax consultants and personal stock brokers exists - they take care of all of the details that many people have no time to figure out. Seniors, however, often find themselves so focused on work that they forget to plan for retirement, and this can lead to frustration later in life.
A recent survey by Schwab showed that nearly one third of workers who said they were within five years of retirement had not taken the time to calculate any sort of savings plan. This news is quite disturbing, as The Street reported that 76 million baby boomers will approach the age of retirement in the next 20 years.
"The bottom line is that transitioning into retirement mode is a very emotional time," said Schwab senior VP Carrie Schwab-Pomerantz, according to The Street. "Saving for retirement is something most Americans know they have to do, but many people are confused, scared and literally frozen when it comes to flipping the switch from saving to withdrawing."
The reality is that the aging elderly will eventually need personal savings to take care of things like home health care and assisted living. Without a reserve fund to dip into, expenses can soon spiral out of control. But there is still hope even for seniors just a few years away from retirement.
There are a few steps that senior employees can follow if they have not readied a retirement plan. The first objective is to review the current financial situation - how much money has been already set aside for retirement, and how much more needs to be saved? After this figure is determined, the elderly should begin transferring money into a single account, because there is no need to spread capital across many different banks - this will simply make it harder to keep track of later on.
Seniors should also create reachable goals for themselves - if declining mobility prompts the possibility of a private care attendant within the next ten years, they should save accordingly. But there is no need to feel like time is running out:
"Retirement today could be a 30-year endeavor," said Schwab-Pomerantz, "and you can do a lot in 30 years."